Arjita Chndna, Ashutosh Yadav


Arthur Lewis, in 1954, gave a widely accepted theory, which envisaged economic growth as a process resulting from transfer of labor from low productivity agricultural sector to high productivity industrial sector. While his theory emphasized on the role of labor, this structural change of economy also calls for a change in pattern of land use. This very theoretical framework is rooted in debates around the need for acquisition of land for industries. In Post- liberalization era, state is playing a pro-active role in private acquisition. State’s role as a facilitator in land acquisition drives for industrial purpose, however, calls for an investigation. In our paper, we will investigate the nature and the scope of acquisition carried by state for industries. While doing that, we try to answer whether land acquisition, as a policy tool for industries, is justified or not. We conclude that, in theory, land acquisition by state may work better than private market transactions to acquire land for industrial use. Yet, the way it had been carried out, in the past, makes it a matter of concern. The long –standing the new land acquisition bill in parliament must address some of these concerns.


Land Acquisition; economic growth; agriculture; industry; state intervention, Lewis Model; Coase Theorem

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